There are indications that the Central Bank of Nigeria, CBN, has directed banks to trade foreign exchange at any exchange rate in the Investors & Exporters window based on willing buy, willing seller arrangements.
With the new flexible trading structure, the I&E window exchange rate rose sharply to N610 per dollar from N471.67 on Wednesday. Though the CBN is yet to issue a statement to this effect, two banking executives have confirmed that it is true that the CBN has given the directive to the banks.
An investment banker and the Co-founder, Comercio Partners, Nnamdi Nwizu, said the immediate impact of the directive is enhanced foreign exchange inflow into the economy and further rise in the inflation rate, as the I&E window exchange rate rises aggressively as already seen.
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